EMPIRE TRADE.

Hokitika Guardian, 11 May 1923, Page 4

EMPIRE TRADE.

SPEECH BY TRADE COMMISSIONER. WELLINGTON, May 8. Last night at it banquet tendered him Mr Elmslie (British Trade Commissioner! who was very cordially received, said lie had been overwhelmed by kindness and offers of assistance and co-ope-ration since he bad arrived in the Dominion a fortnight ago. He had never had any doubt as to New Zealand’s patriotism for British products, as he had had ample evidence of it in his correspondence with Air Dalton. lam amazed at the strength of the feeling,” he added. ‘T have no doubt that the inhabitants of New Zealand are more British than the inhabitants of Great Britain.”

“There are many points in the chairman’s speech that touch on exceedingly thorny questions,” said the eomnii.qsioner. ‘‘Heine of them deal with matters requiring local knowledge, which I have not yet acquired ; others verge on politics, locally and in Great Britain. I have some knowledge of them, but I am a Civil servant of the British Crown, and believe that Civil servants should net give utterance to political opinions.’’ features of world trade.

■•] might, however, be permitted to deal, on very broad lines, with certain features of world trade, in their hearing on New Zealand’s conditions and prosperity,” continued the commissioner. “We cannot get a clear understanding of the trade position of one country without studying world conditions. This applies also to trade between two countries. It may look a simple matter to compare the trade of Great Britain and New Zealand; Great Britain takes a very large share —SO ■per cent. —of your Dominion’s products, and New Zealand buys largely from Great Britain. British trade throughout the world is lending to revive. In PHI, it was but ol per cent, of the volume of trade in 1013, but the proportion increased to 00 per cent, in 1022. and. for the last quarter of last year, it was up to 7.7 per cent of the loud trade ol If)UL More ievent figures show that the proportion, is still rising. Our improvement is slow mid irregular. In some trades, recent records show that the volume is up to the pre-war figure, and,‘as a result, unemployment is decreasing greatly ; on the other hand, some other industries show but little progress. But in nearly all there are signs of awakened activity and increasing demand, ft is very easy to ho optimistic, but it is safe to soy that theio i- a distinct movement for the heller, which is evidenced by increasing demand for bonking facilities, and a more general inquiry from all parts of the world. Before we may assume that

the improvement is going to continue, or to lie maintained at its present position in foreign countries. This is a difficult position, because one has to look at it from an economic point of view, and get away from the question of sympathy. In the first place. it

might lie well to look at the economic position of countries affecting trade relations between Great Britain and New Zealand. The general world position alf eels the level of prices. Ii trade throughout the world is good, the output is larger and steadier; that moans

a lowering of manufacturing costs, de

crease in unemployment, an iiuwersv in the national income, and lower taxation. or taxation spread over a larger paying community. An illustration o! the incidence of taxation on trade maybe get from the fact that, in. pre-war days, tlie burden of rates and taxes, excluding income tax, on production of steel amounted to 2s (id per 101 l : to-day that figure is .Cl Is per ton. The question of lower taxation is a vital factor, and can only he attained liv a general widening of the demand. NEED FOR SETTLED CONDITIONS. ‘•Another factor which directly affect: the question is settled conditions in other manufacturing ec.uiitries. Ii other producing countries are producing steadily, it means a steadier world output, and confidence in tiadr. winch will enable vou to tin lorward buying, study vour commitments, mid promote volume in your trade. U means stronger and more even competition. \Ve don't wish to encourage competition with British products, hut yo" must, have steady competition in ether countries, to make tor more stability' and less variation in prices. A third factor is that stable and prosperous conditious throughout tile world mean larger work! purchasing and coiiMimiug power. A larger purchasing power means a steadier demand for raw produets, which more' directly affects a eoiiutrv like New Zealand. You "ill get letter prices and steadier sales, with :. larger purchasing power here. That factor is the l most impc riant at present. Although it is true that Great Britain is buying a large proportion ol her products, there is no question that producing countries have recovered from the war more than inaiiiifactiiriiig countries have done. The volume of agi ieulreml products is enormous, but the purchasing p'-wor if the chi countries is nut so good. The

fact is that there is greater eompeli[feme, hut U’e purchasing power of the outlying countries producing raw materials is decreasing, as ar suit, the market for manufactured gcmd-i in (beat Britain is affected. BRITAIN'S DIFFICULTIES. Looking broadly, the difficulties of Great Britain to-day wore, said Mr Ehnslie, more the lesult of irregular demand, unstable prices and the uncertainty of the future than from actual price levels. At the moment, the level of prices for raw materials and foodstuffs was lower than that ol manufactured goods; consequently, buyers in the countries producing raw materials were, unable to purchase in the same volume as in the past. This was clearly illustrated in the price ol rubber in the. Malay States. It went down to the pre-war level, but the price of manufactured rubber goals was 100 per cent, higher. In purchasing pounds of rubber, the estate manager had to sell three times, to earrv on. He could not keep the estate in order, and the import trade fell otf. The speaker quoted the loss of India's trade in tea, hides and other products to-Central Europe, as one •! the chief factors in the trade depression in India. The. present position of the steel trade, too, was a practical result of German conditions. This was of course from the economic and not from the political standpoint. It- was plain that the action of the French in invading Germany and seizing the Ruhr, and the methods of the Germans in resisting that invasion by economic- strikes had disorganised transport, which interfered with the supply of coal and coke, not only to German. but also to French and Belgian industries, and the output- was heavily reduced. Pig-iron was being piled up, and could not he exported. The immediate effect was beneficial to Great Britain, where prices were rising, and British industries were unable to supple the orders that were coining in. IS ANOTHER SLUMP COMING. "There is a distinct danger of a situation similar to that which arose in 1920, although on a smaller scale, owing to the curtailed supply and increasing demand,” said the commissioner. “Prices are becoming unstable and rising. A period of speculation may be expected. When that happens and the supplies of the Ruhr are set free, you will get over-production, a further slump, and a general disturb- |

mice of the trade throughout the world, with a serious curtailment' of confidence and a general handicap- on . trading. Apart from any question of the merits or the demerits of the Ruhr situation, there is no doubt that it is having a serious effect on other trades. It will affect New Zealand in one important phase. Germany lias been buying wool, in the last couple of years, on a large scale in Great Britain, but owing to the difficulty of exchange and transport, she has ceased buying for the moment. The consequence .s shown directly at Home in a general tendney to watch the situation closely. Their buyers know that supplies me coming forward, and are waiting. Stocks are therefore accumulating, and trade is being directly checked. One ! must give full weight to the factors lof the international situation. It is a very great mistake to think that, because there is no direct trade between New Zealand and other countries that the position in those countries does not affect us here. Every country in the world has seme direct bearing on the trade of all others. Providing nothing unforeseen happens to disturb the recovery of Em ope. we may look forward to increasing trade and general prosperity. The most important question lor us, however, is the question of trade within tile Empire. Very grave difficulties in regard to it have to be examined and investigated by the Tm--1 crinl Economic Conference. (Ap- . plau-cb

EMPIRE TRADE. AUSTRALIAN AM) N.Z. CABLE ASSOCIATION. LONDON, May 10 Mr K. Merritt, of Victoria, in an address at the Royal Colonial Institute upon tratio witliiu the Empire and how to develop it. advocated firstly, reciprocal tariffs, meaning thereby the highest possible preferential taiills. secondly, pres, publicity. He complained bitterly that the newspapers consistently ignored Australia and New Zealand : thirdly, education of children „f the Empire." Mr Merritt suggested Britain’s annual increase ol hall a million of population should migrate la Australasia, which thereby in twenty cears would become one ol the greatest producing countries of the Empire. A discussion followed. Sir -1. Allen advocated the incorporation in the Merchandise Bill, now before Parliament, of a provision (list anguishing dominions producers Irom toreign. lie did not believe if was possible lor Australia and New Zealand to absorb half a million migrants yearly. Tt was impossible to find them homes and provide employment.